Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

At the start of the week, Bitcoin showed signs of decoupling from US equities. However, US president Trump's positive remarks about the US-China trade war (which had included a 145% tariff on Chinese goods) triggered a relief rally across markets. As a result, BTC has resumed moving up with US equities. 

This rally has led to a rise in short-tenor implied volatility and a recovery in BTC’s put-call skew, indicating that traders are seeking upside exposure.

Please check out the report’s highlights.

Perp open interest rises across the board

Perpetual open interest increased significantly this week across various tokens, especially ETH. Perpetual trading volumes also rose. Notably, Ap 7, 2025 recorded the highest trade volume of the month, following Trump's comment, "Forget markets for a second, we have all the advantages."

BTC option open interest shows a mixed picture; put-call skew in short tenor sends positive signals

President Trump’s recent willingness to negotiate a trade deal with China’s President Xi triggered a relief rally across asset classes, including crypto. Bitcoin had already risen 7% since Apr 21, 2025, prior to Trump's comments. Despite this rally, open interest in puts has outpaced calls, with options volume remaining relatively balanced. 

It's unclear if the demand for puts reflects a hedge against downside risks, or a bet against the upward movement. Meanwhile, perpetual funding rates are providing limited insight into sentiment. However, the recovery of the put-call skew at short tenors indicates that traders are seeking upside exposure to the rally — and are willing to pay for it.

ETH unexpectedly outperforms BTC in this relief rally

ETH's response to the recent crypto market recovery has diverged from previous trends: it outperformed BTC in spot prices, a rarity in past rallies, and open interest in calls exceeds that in puts — opposite to BTC's trend. In addition, ETH call open interest is nearly double that of puts, with calls dominating options volumes. This suggests traders anticipate ETH will reduce its significant underperformance against both BTC and other “ETH killers” like SUI and SOL. Additionally, the spot rally has led to another term structure inversion for ETH.

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Bybit X Block Scholes crypto derivatives analytics report (Apr 24, 2025): Put-call skew recovers at short tenors, showing reviving sentiment

Explore all the hottest Bybit events happening during the week of TOKEN2049 Dubai in this article.

It’s that time of year again — TOKEN2049 Dubai is back, and the city is buzzing with excitement. As one of the most anticipated events on the crypto calendar, it’s not just about the main conference; it’s about everything happening around it, too. From side events and workshops to exclusive mixers and demo days, Bybit is showing up in full force this year. Here's your inside look at what to expect during this action-packed week.

The heart of TOKEN2049 Week, TOKEN2049 Dubai promises two full days of future-facing discussions and innovation in the world of crypto. At the center of it all is Bybit’s immersive booth experience, built on the theme 

. It’s not just a theme — it’s a vibe. Picture claw machines, 

If you’re heading to TOKEN2049 Dubai, be sure to drop by the Bybit booth (located at P33) and chat with our extraordinary Bybit team! And don’t miss your chance to grab a gacha token by scanning our QR code with Bybit Pay. You could walk away with exclusive Bybit merch! 

DMCC x VARA: Crypto regulations and business growth

Policy meets progress at this exclusive evening event co-hosted by DMCC and VARA. This gathering brings together regulators and industry leaders for an open discussion on the future of digital asset compliance and business growth in the region.

You can expect sharp insights, candid perspectives and forward-thinking dialogue about what it really takes to scale a crypto business in a regulated environment. If you care about the future of web3 in the UAE, this is one event to mark on your calendar.

Bybit After Hours: Exclusive Insights & Networking 

 is a private cocktail evening for top-tier traders and long-time supporters of Bybit. This event is equal parts networking, knowledge sharing and celebration.

 to strategic conversations with the Bybit team, this night is tailored to those who trade big and think bigger. With an invite-only guest list, it’s set to be one of the most exclusive experiences of the week.

The Crypto Hub x Bybit Crypto Ark Demo Day

 is all about bringing hands-on energy to the web3 scene. Hosted at the Crypto Ark inside Bybit’s office, this event welcomes founders, devs and crypto creatives for a casual evening of product showcases, idea exchange and light networking.

While Bybit provides the space, the real spotlight is on the community — those shaping the next wave of innovation in web3.

 from across the CIS region are gathering for a deep dive into the tools, tips and strategies that drive growth at Bybit. This meetup goes beyond surface-level sharing — expect actionable workshops covering our Bybit Affiliate program and affiliate best practices.

It’s also a chance to hear directly from Bybit product leads and regional managers, share success stories and walk away with fresh ideas to maximize conversions. 

Wunderbit x Bybit: “Hey, Trading Bot, where is my profit?”

 are here to stay — and this event is going deep into what makes them tick. Co-hosted by Wunderbit and Bybit, the evening workshop blends honest stories from real traders with expert insights on how to avoid common automation pitfalls.

From bot setups that work to the ones that quietly drain your profits, this is your chance to ask the tough questions, hear unfiltered answers — and maybe rethink how you’re running your own bot strategy.

 (RWAs) are taking center stage at the RWA Gulf Summit, a high-powered event co-hosted by Qatar National Bank, Commercial Bank International and DMZ Finance. This summit brings together bank leaders, wealth funds, participants in DIFC, institutional investors and industry pioneers to explore the evolution of tokenized finance in the Middle East and beyond.

Bybit’s Head of Financial Products Jerry Li will take the stage to discuss how 

 (CEXs) can harness RWAs for enhanced yield and 

Dubai's Pinnacle Mixer: Mantle, Mirana, Bybit and Ethena

High above the city, this mixer brings together some of the biggest names in web3 — Mantle, Mirana, Bybit and Ethena. Expect an unforgettable evening of casual chats, cross-chain connections and cocktails with the minds behind some of today’s most innovative projects.

This private event is all about experiencing Bybit Pay in action. See interactive demos, grab a sneak peek at upcoming partnerships and network over bites and drinks. It’s a rare behind-the-scenes look at the way Bybit is shaping the future of crypto payments. 

Wrapping up the week is the Bybit Institutional Symposium — a full-day event dedicated to aligning strategies with institutional clients and forging new collaborations. From macro views to product deep-dives, this conference is built to spark big conversations among serious players.

The day concludes with a gala dinner, a fitting finale to a week in which ideas, connections and innovation have taken center stage.

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Bybit Learn Highlights What to Expect at Bybit

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Highlights: What to expect at Bybit (Apr 28–May 2, 2025)

Balance (EPT) is revolutionizing web3 gaming with evolving AI companions, blending blockchain, strategy, and intelligent gameplay in one powerful platform.

Artificial intelligence (AI) agents are a key growth area within the blockchain industry. Projects like Artificial Superintelligence Alliance (FET), 

 (AI16Z) and countless others have been essential components driving the overall crypto market. As of April 2025, the CoinGecko portal lists more than 500 cryptocurrencies within its category of AI Agents. These intelligent assistants are now helping individuals and businesses analyze markets, create textual and visual content, automate work processes and trade profitably.

There's a further area where AI agents on the blockchain are flourishing: the world of 

 gaming. In this sphere, bots and agents based on AI algorithms are helping users develop the best in-game strategies, succeed in the competitive world of play-to-earn (P2E) and overcome key challenges in complex gameplay.

Balance (EPT) is a blockchain gaming project that takes the use of 

 to a completely new level. The creation of the team at the world’s largest social gaming platform, E-Pal, Balance offers players AI agents that can aid them in the in-game environment and serve as their personal companions. Based on a multi-layer architecture, the platform offers some of the most cutting-edge use cases for gaming-oriented AI agents.

 (EPT) is a web3 gaming platform that allows players to easily create, own and use AI companions within the blockchain games it supports.

 Balance supports a variety of first-party (internally developed) and third-party web3 games. You can deploy your AI gaming companions and they’ll act as your assistants, friends or co-players within Balance games.

Using Balance.fun, the platform’s primary web interface, you can create your AI agents and specify various details, such as appearance, personality and functions.

Balance isn’t just another obscure crypto gaming platform. The origins of the project date back to 2020, when the E-Pal social gaming provider was launched by four young California-based technology entrepreneurs — Brian Xiong, Tung Pham, Yuzhe Norris Wang and Yuanzhe Li. E-Pal quickly became a leading force in the newly emerging social gaming field, helping players worldwide find gaming companions. By early 2024, E-Pal had become the world’s largest gaming companion platform, boasting 4.2 million users and 450,000 Epals (gaming companions).

In February 2024, the E-Pal team focused its efforts on 

 and AI technologies, starting the development work on the Balance gaming platform. In September of the same year, Balance went live.

Per the project’s documentation, the platform operates on its own chain, Balance Chain, with 

 (AA) technology used for cross-chain communication. The fungible and 

 (NFTs) held by user accounts are based on the 

A key part of the Balance ecosystem is Key Nodes — purchasable 

 that help with the processing, storage and distribution of data required in the resource-intensive environment of web3 gaming. Some applied instances are the management of real-time leaderboards and the automatic distribution of loot and in-game currency. These nodes can also support the computational requirements of training AI models. As a reward for their work in supporting the platform’s operations, Key Nodes receive a wide range of rewards and benefits, including distributions of EPT tokens, the platform’s native cryptocurrency.

As the ecosystem develops, Key Nodes are envisioned to be involved in governance, 

 launch in September 2024, Balance introduced its Points System, designed to reward early contributors to the platform. During the campaign run in September, users could earn points by completing various specified tasks in various activities, such as joining the project’s social media pages or commenting and reposting.

The 400 users with the best performance in the Points System earned a whitelist spot to receive Pioneer Badge NFTs — distinct tokens that provide owners with early access to games, future campaigns, airdrops and beta testing opportunities. Pioneer Badge NFT holders can also enjoy other benefits, such as premium NFTs and voting rights on the Balance platform.

Balance’s platform provides a set of tools to create and use intelligent companions for Balance-based games. You can design your AI companions by specifying their key traits and behaviors through custom prompts and strategies. The AI agents on Balance can assist you in battles, gaming contests, learning, routine task execution and interactive entertainment.

Balance’s platform is made up of five key layers, each one serving a specific purpose in supporting its user and developer communities. At the top of the architectural stack is the application layer, which acts as the main interface for users to interact with human and AI companions and the wider Balance community.

The application layer also contains the AI Battle Reporting System, which is designed to give users feedback and analysis tools on their performance in the platform’s gaming ecosystem. AI technology is leveraged here to provide personalized analytics and performance improvement recommendations.

A range of NFTs are also part of the layer. These include in-game asset NFTs, as well as 

 (SBTs) that serve as summaries of the holder’s achievements.

The platform layer hosts the various games within the Balance gaming universe. These include both internal games and third-party games that have partnered with Balance. The key concept uniting all of the games is the active integration of AI companions and AI players, making the platform a unique environment in which humans and AI agents play, interact and compete.

The platform layer also features an AI-driven NFT launchpad that offers a rich tool set for creating personalized NFTs for games and applications. These NFTs can be traded on Balance's NFT marketplace, which is also an integral part of the platform layer.

The protocol layer includes a trio of critical protocols — the Fans Protocol, Epal Fan Token (FT) Exchange Protocol and Asset Protocol. The Fans Protocol lets players launch and manage their Fan Tokens, creating opportunities for influencers and community builders to tokenize their efforts and launch high-potential crypto assets. Meanwhile, the Epal FT Exchange Protocol facilitates the management of (and trade in) Fan Tokens.

The third protocol, Asset, is used for the comprehensive management of a wide range of digital assets on Balance, providing easy-to-use tools for asset creation and trading.

The token layer is designed for core operations involving the platform’s native EPT token. This layer supports the use of EPT for in-game purchases, access to services and AI companions, Fan Token minting and trading, in addition to other functionalities.

This is the underlying infrastructural layer that powers the platform’s operational mechanism. It can be described as Balance's operating system, and is made up of several critical components: the node system, the Balance 

, the Balance Chain network and the platform's unique ID system.

The node system provides the computational and storage resources to power games and other functionality on Balance. In addition, the system acts as a key connecting medium between Balance Chain and the AA functionality that lets the platform enjoy cross-chain capabilities.

The Balance stablecoin, also part of the infra layer, is designed to reduce volatility and bring rate stability to the platform's gaming ecosystem. The Balance stablecoin system helps players engage in asset trading without the fear of wild market fluctuations, an important consideration in the 

Designed to support multiple chains, Balance Chain operates based on dynamic protocol adaptation, automatically selecting the optimal blockchain platform according to user preferences and needs. This dynamic adaptability is designed to reduce costs, improve operational speed and enhance overall security for users.

The final major component of the Balance infrastructure layer, the Balance ID system, is a unified and secure user authentication and identity management solution. To be introduced later in 2025, the ID system will let users access all services and games within the Balance ecosystem via a single set of cross-platform decentralized credentials. In addition to human players, also AI companions will have their unique IDs.

EPT is the native cryptocurrency of Balance. Although the platform has been operational since 2024, the EPT token was just launched on Apr 21, 2025, with a total and maximum supply of 10 billion. It was issued on two major blockchains — Ethereum and BNB Chain. EPT has a wide range of functional use cases on the platform, including the following:

The EPT token's supply allocation is per the chart below.

 as a swap pair with USDT, and through the exchange's 

 based on USDT. You can also take advantage of Bybit’s campaign dedicated to the token to grab a share of the 

Under the terms of the event, new users can earn EPT rewards by accumulating a deposit volume of at least 3,000 EPT, or by depositing at least 100 USDT and trading 100 USDT worth of EPT via their first spot trade with Bybit. Meanwhile, existing users can qualify for rewards by trading at least 500 USDT worth of EPT on Spot. The event is valid through May 5, 2025, 9AM UTC.

As of Apr 25, 2025, the EPT token has been on the market for only four days, and is trading at $0.0117, which is 26.4% lower than its ATH of $0.01708 on Apr 21, 2025, and 11.4% higher than its ATL of $0.01129 on Apr 22, 2025.

Long-term price forecasts for EPT are mostly bullish. DigitalCoinPrice 

 of $0.0412 in 2027 and $0.0615 in 2030, whilePricePrediction 

These and other emerging long-term forecasts for the token don't constitute investment advice. Given EPT's extremely short history on the market so far, 

 on the token's future prospects, carefully assess market fluctuations within the crypto gaming niche and consider all other relevant factors before investing in it or any other cryptocurrency.

Capturing emerging market trends and sensing the broader market conditions, the team at E-Pal recognized the tremendous potential of gaming companions back in 2020. Four years later, E-Pal realized that the new market dynamics in gaming called for something even more innovative — the use of AI companions, in addition to fellow humans. The resulting product, the Balance platform, is now racing to stake the claim to the best web3 gaming environment supported by AI agents.

The platform's unique features — cross-chain functionality supported by an AA mechanism, a dynamic exchange system that selects the best network for users' transactions and, most importantly, intelligent AI companions — can certainly help establish Balance as a leader in this niche of web3 gaming.

AI agents are taking the gaming industry by storm, with blockchain technology acting as a powerful enabler of these intelligent friends of ours. The Balance gaming universe — supported by the proven track record of E-Pal — has a great chance of becoming the go-to environment in which to befriend your next artificial gaming partner.

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Balance (EPT): Revolutionizing web3 gaming with evolving AI companions

Mantle has launched the Mantle Index Four (MI4), an institutional-grade fund providing diversified exposure to yield-bearing digital assets. 

The S&P 500 rose 2.03% on strong Alphabet earnings and optimism over a possible Fed rate cut. Gold jumped 1.5% to $3,338 as trade tensions rose and a weaker dollar, along with falling yields, boosted demand. Fed rate cut signals also supported the rally. The Coindesk Indices, which tracks the broader crypto market, rose 0.74%, with Bitcoin up 0.06% and Ether down 1.89%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is INIT, up 15.4%, following the launch of Initia, which aims to revive the appchain concept with an interconnected network and an INIT token airdrop.

Initia (INIT), founded in 2022, is a modular blockchain platform that combines a Layer 1 network with customizable Layer 2 rollups, enabling scalable decentralized app development. It offers flexibility in virtual machines, gas tokens, and transaction systems, while ensuring interoperability and addressing issues like liquidity fragmentation and network congestion. Initia has 

 to revive the appchain concept by offering a network that integrates appchains in a cohesive, interconnected way. The platform emphasizes full-stack control for apps, avoiding fragmentation. Initia is also launching an airdrop with claims available until May 24, 2025. The native token, INIT, has a fixed supply of 1 billion, distributed across eight categories.

Check out the latest prices, charts, and data of 

, an institutional-grade fund providing diversified exposure to yield-bearing digital assets. In partnership with Securitize, which has tokenized over $3B in assets, the fund aims to fill a market gap by offering native yield generation in a traditional fund format. Mantle Treasury has committed up to $400M as the anchor investment. The fund will rebalance quarterly and incorporate DeFi-native staking strategies, such as mETH and bbSOL, while ensuring investor protections. MI4 targets both crypto-native and traditional investors, with Phase 1 rollout scheduled for Q2 2025.

Yesterday, BTC spot ETFs saw a total inflow of $114.7 million, all from non-GBTC funds, while GBTC recorded no flow.

Dolomite, the 10th largest DeFi lending app, is launching a 200M token 

 (20% of total supply) during its TGE on April 24, rewarding users based on platform usage. The DOLO token powers a three-token system alongside oDOLO and veDOLO, enabling incentives, governance, and potential revenue sharing. With over $800M in TVL, Dolomite expands to Berachain, integrating with its Proof of Liquidity system to offer advanced lending features and asset utility.

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Mantle launches MI4 fund for institutional-grade digital asset exposure and yield generation

Bitcoin

Investing

Bitcoin has been a lucrative investment for many, but its volatility makes it prudent to delve into comprehensive research and employ risk management strategies when investing in it.

 launched in January 2009, it’s turned many people into millionaires and has even created a handful of billionaires through their well-timed buy and sell transactions. More than that, Bitcoin has gained prominence as the future of 

 (DeFi) and has been adopted by many as a functional currency. Based on its astounding 

, Bitcoin is by far the most prominent cryptocurrency today and is often the focus of investors' interests.

Nevertheless, as is true with all digital currencies, Bitcoin is highly volatile, presenting investors with the chance for extraordinary profits as well as the significant risk of substantial loss. Bitcoin's price dropped by over 10% in August 2023 to $26,000, making it the worst month for the year. Additionally, Bitcoin's price plummeted to $16,000 in 2022, 75% below its all-time high of over $69,000.

With these factors in mind, we’ll explore whether Bitcoin is a good investment in 2023.

Bitcoin is the world's first successful cryptocurrency, created by a pseudonymous individual(s), 

, in January 2009. Developed as an alternative to fiat money, its decentralized nature empowers users with control over their wealth without relying on centralized institutions such as banks.

Bitcoin achieves decentralized consensus through its use of the 

 (PoW) consensus mechanism, which involves competing miners using the power of computers to solve complex mathematical puzzles to validate and confirm transactions and add them to the blockchain. This PoW mechanism ensures the integrity and security of the network.

Bitcoin is distinct from traditional investment options that you may be more familiar with, such as stocks and commodities. Unlike corporate stocks, which represent ownership in a centralized business entity that generates revenue from its products or services, Bitcoin isn’t a tangible, raw material. Instead, its core function is as a decentralized digital currency.

From a utility perspective, Bitcoin presents a transformative potential in the financial world by leveraging decentralized 

 to validate and secure its transactions. For example, Bitcoin transactions occur directly between users, without needing a third-party intermediary such as banks, which helps facilitate smoother, faster cross-border transactions. In addition, transactions recorded on the blockchain are immutable, which means they cannot be altered or reversed. These characteristics offer a high level of payment security and help to prevent fraud.

Yet, while Bitcoin is increasingly employed as a medium for purchasing goods and services, its adoption for such real-world transactions remains in its early stages. Some individuals may use Bitcoin for real-world transactions or as a potentially lucrative investment, but those in the broader crypto community mainly invest in Bitcoin to support the evolution of the crypto industry and the wider adoption of digital currencies.

There’s a fixed supply of Bitcoin’s native token, BTC. Specifically, the maximum supply is locked at 

. Currently, 19.48 million BTC are in circulation. Because of the limited supply of BTC tokens, Bitcoin’s value is solidly rooted in the fundamental economic principle of supply and demand. As demand for BTC increases, upward pressure raises the price. However, when demand decreases, the price of BTC correspondingly decreases.

Fiat currencies, which are widely used around the world, are also subject to price fluctuations based on supply and demand. However, banking systems can create more money, such as by extending credit to borrowers. In addition, governments can print more money. Both of these activities play a role in the value of fiat currencies, but these factors aren’t at play in determining Bitcoin’s value.

As a digital currency, Bitcoin has a few key characteristics.

With a fixed supply of BTC and with most of those tokens already in circulation, the scarcity of BTC plays a direct role in the value of this digital asset. In addition, Bitcoin has a halving event approximately every four years, after which the reward received by the network's miners is halved. After the 

, the payout to miners will be cut from the current 6.25 BTC to 3.125 BTC.

Halving plays a key role in contracting supply, and has historically had a profound impact on Bitcoin’s price. For example, the 2012 event took BTC’s price from $12.53 to $126 just five months after the halving. In 2016, the price went from $650.87 to $763.91, and in 2020, Bitcoin's price rose from $8,852.62 to $11,286.54.

Some strategy advisors suggest purchasing BTC roughly six months before a halving event and holding it for at least six months afterward. However, while BTC’s price has historically increased after halving events, it’s crucial to understand that all crypto investments are risky. There is no guarantee that the next halving event will yield the same impact on price as the previous ones.

 that entails solving complex mathematical equations to verify transactions, thereby consuming a substantial amount of electricity. This results in high operating costs because electricity drives the equipment necessary to mine Bitcoin — and to mitigate the heat that the mining machines produce. The combination of immense energy consumption and resultant high costs of Bitcoin mining creates a steep entry barrier to newcomers, ultimately driving up the price of Bitcoin.

As of Sep 12, 2023, Bitcoin remains the largest cryptocurrency based on 

, the second largest cryptocurrency, boasts a market cap of $189.95 billion. While Ethereum hasn’t yet surpassed Bitcoin's market cap, some crypto enthusiasts believe that the so-called 

Ethereum's recent transition from PoW to 

 (PoS) network, known as The Merge, positions it as a front-runner in the realm of 

 platforms. Those monitoring the possibility of a Flippening note that Ethereum has already surpassed Bitcoin’s number of transactions and amount of transaction fees paid — significant indicators of its growing utility and adoption.

Nonetheless, Bitcoin’s market cap has continued to rise alongside Ethereum’s, and the upcoming halving event will likely reinforce Bitcoin’s dominance.

The value of Bitcoin is heavily influenced by public interest, and both word of mouth and media coverage drive public interest. Interest in Bitcoin investing tends to accelerate rapidly when the price is trending upward. As more people invest in Bitcoin, the price increases further. Eventually, such speculation and grand hopes of getting rich quickly lead to a 

Short-term investors looking for a quick profit complete Bitcoin transactions rapidly at the first sign of a mass selloff, hoping to lock in what profit their Bitcoin investment has produced. 

Historically, the media has picked up on rapid rises in the price of Bitcoin. This can create an even greater frenzy in Bitcoin investing, even among those with minimal interest in the cryptocurrency market. However, just as the media begins to cover stories about rapid price increases, it also reports price drops —which contribute to panic selling, resulting in tremendous price decreases. In this way, public interest and media coverage can both feed into Bitcoin price surges and declines. 

A Closer Look at Bitcoin's Historical Performance

For cryptocurrency investors wondering if Bitcoin is a good investment, a review of its historical performance can be helpful.

In recent years, inflation and the printing of more U.S. dollars have contributed to increased interest in investing in the cryptocurrency market, due to Bitcoin's reputation as 

Bitcoin's strong market cap, investor demand and scarcity drove it to reach its all-time high of $69,000 in 2021. However, the volatility of the cryptocurrency market has yielded sharp declines in BTC’s price as well. For example, in November 2022, BTC fell to a low of $16,000 after the 

 brought about by several crises, most notably the 

Throughout its history, Bitcoin's price has been substantially influenced by overbuying and overselling. Those who invest in Bitcoin often focus heavily on market sentiment and media influence. However, volatility represents opportunities for significant profits among short-term investors. Additionally, Bitcoin’s price grew by an astounding 37,000% between 2013 and 2023, making it a potentially lucrative long-term investment as well.

As with other digital currencies, Bitcoin’s price took a deep plunge in 2022. Specifically, its market value declined by 65% in 2022, falling to $16,000 in November. Numerous macroeconomic factors took their toll on the crypto market in 2022, particularly the FTX debacle and the Terra/Luna crash.

The very first catalyst was the Terra/Luna crash in May 2022, when the third largest stablecoin, 

 (UST), depegged from the U.S. Dollar, dropping to a price of $0.035 on May 9. A few days later, its sister token, 

, which was meant to help maintain the price of UST, fell in value from almost $80 to barely a few cents. When Terra/Luna collapsed, it produced a 

The crypto market faced another devastating crisis in November 2022 with the collapse of one of the world's largest cryptocurrency exchanges, FTX, which filed for bankruptcy due to a combination of liquidity crunch, large withdrawal volume and fund mismanagement. The FTX downfall resulted in an estimated 

The ripple effects of these two crises raised the overall 

 (fear, uncertainty and doubt) as investors began to view crypto as a highly volatile and speculative asset, contributing to lower risk tolerance.

On Aug 1, 2023, the price of BTC was $29,233. It then fell to $26,042 on Aug 19. Several factors 

For example, SpaceX had reportedly sold a substantial amount (or possibly all) of its Bitcoin holdings, amounting to $373 million, early in the month. Additionally, the expectation of another Fed interest rate hike in the near future and increasing government bond yields may have contributed to negative crypto sentiment. Outside of the U.S., the devaluation of the Chinese yuan and the property crisis brought about by the downfall of Chinese property giant Evergrande produced downward pressure on Bitcoin's price.

While BTC is currently priced lower than its high of $30,000 in early 2023, this may actually be positive news for those interested in investing in it. Bitcoin has had numerous price dips throughout its history that have always been followed by substantial price increases. Given that a halving event will occur in April 2024, the current price dip could represent a fantastic opportunity to buy Bitcoin for a future profit.

Before investing in BTC, however, it’s essential to conduct both 

 to make more informed investment decisions. Bitcoin’s historical performance doesn’t necessarily guarantee that its price will rise again in the future, and numerous factors may create upward or downward pressure on its price. In addition, given the volatility of the crypto market, investors must practice caution by investing only what they can afford to lose.

Given Bitcoin’s volatile nature, it’s wise to proceed prudently with your investment in order to mitigate the risk of financial loss.

One way to reduce your risk exposure is to allocate a small portion of your total portfolio to your Bitcoin investment. Generally, a 1% allocation is a relatively low-risk investment, while investing up to 30% of your portfolio exposes you to a much more sizable loss if you sell Bitcoin at an inopportune time. Also, consider extending your portfolio to include stocks, bonds, real estate and other types of assets.

Buying low and selling high is the key to profiting from any investment, but this tack is particularly challenging in a highly volatile market. A proven way to tackle this challenge is with 

. Rather than investing a large amount at one time and hoping you hit the dip at its lowest point, you can make smaller purchases at regular intervals. 

It’s also essential to choose the right 

 to store your Bitcoin (hot wallet vs. cold wallet). A hot wallet is accessible on your phone or computer via the internet, and is typically provided by crypto exchanges. In contrast, a cold wallet lets you store your crypto assets offline. The accessibility of a hot wallet appeals to many investors, but the enhanced security of a cold wallet has considerable benefits as well. When choosing a cryptocurrency exchange for your Bitcoin transactions, it’s important to research the type(s) of wallet it supports. 

 allow investors to profit from investing in Bitcoin without actually needing to own the volatile asset. A Bitcoin ETF is a pool of funds from numerous investors that tracks and mirrors Bitcoin pricing, and is traded on prominent stock exchanges. Nevertheless, because Bitcoin ETFs are traded freely on an exchange, similar to stocks, their pricing can sometimes diverge from Bitcoin's actual net asset value.

 facilitate the purchase of Bitcoin, exchange Bitcoin for fiat currencies and are commonly located in major population centers worldwide. These ATMs function in the same way that traditional ATMs do, so you can expect absolute convenience with their speed and ease of use. However, they charge steep transaction fees of up to 20%, and offer little to no customer support when problems or questions arise.

As the largest cryptocurrency by market cap, Bitcoin is available for purchase on numerous cryptocurrency exchanges. Each cryptocurrency exchange has unique features and benefits that can directly affect your investment experience. One leading exchange is Bybit, highly regarded for its security measures. For example, Bybit has enhanced security functions to ensure the 

. Bybit also offers over 100 different cryptocurrencies, and more than 300 

Bybit’s intuitive dashboard makes it easy to buy Bitcoin. After 

, you can complete secure, quick purchases and trades without hassle. In addition, you can hold your bitcoins in an attached wallet or 

Through the Bybit interface, you can invest in Bitcoin using your credit/debit card or any other preferred payment method, such as bank transfer. To do so, follow the easy steps to link your desired payment method to your Bybit account. Once connected, you can complete a short purchase order form. After verifying the payment, your Bitcoin purchase will be finalized. The coins are then stored in your wallet until you’re ready to sell, trade or stake them.

With Bybit, you can trade Bitcoin as a spot or 

, depending upon the type of trading pair. Bybit is a robust exchange that provides numerous BTC derivatives to trade. Some of these include perpetual contracts, inverse perpetual contracts, inverse futures and options. Additionally, Bybit offers 

 to aid beginner traders interested in spot trading. With a multitude of trading options available, Bybit supports the varied interests and needs of crypto traders. 

 trading platform on Bybit that allows users to transact directly with advertisers and third-party liquidity providers, allowing them to enjoy a more competitive conversion rate. The system's smart recommendation filters analyze buyers' and sellers' preferences to match buyers and sellers sharing the most similarities.

 enables crypto investors to generate interest on their cryptocurrency holdings. The invested principal is protected, and the platform provides options for both fixed and flexible terms, accompanied by guaranteed 

 feature, liquidity pools built on a revamped 

 (AMM) model so investors can create a passive income stream by acting as liquidity providers. To do so, simply deposit an asset pair like BTC/USDT into a liquidity pool and profit from the yield generated by swap fees in the pool. Note, however, that like typical AMMs in 

 (DEXs), liquidity providers on Bybit are susceptible to the risk of 

 allows investors to profit from short-term price movements in a volatile market with a short and flexible lockup period. While users can expect a yield, regardless of the price direction, it's crucial to note that if the asset price falls below the entry price during a downward trend, their returns on the settlement asset may be lower than their initial deposit.

Other Cryptocurrencies for Beginners to Consider Investing In

With more than 23,000 active cryptocurrencies available today, the investment opportunities are substantial. However, many crypto projects lack solid fundamentals and potential, and they ultimately fail. Beginning investors often benefit from 

 that don't require a strong understanding of market analysis, and eliminate the risk associated with frequent and speculative transactions. 

 could be well-suited for beginners interested in long-term holds. What other cryptocurrencies should you consider before you buy Bitcoin — or in conjunction with a Bitcoin investment? 

The second largest crypto by market cap, Ethereum has long been a leading crypto project, thanks to its extensive utility. While Bitcoin was created to function as a digital payment system, Ethereum leverages blockchain technology to build an entire digital economy with 

 (EVM), developers can directly execute smart contracts and build DApps without the need for an intermediary. 

Ethereum's appeal to investors has grown recently, thanks to 

, which occurred after long anticipation on Sep 15, 2022. The Merge transitioned Ethereum’s consensus mechanism from PoW to PoS and effected multiple advantages, such as reduced energy consumption, deflationary pressure on Ether’s price and the opportunity for investors to earn interest by staking their ETH tokens. Notably, between November 2022 and August 2023, the price of ETH increased by over 40%. 

 are recognized for their price stability. USDT, despite being a digital currency, maintains its value by being pegged to the U.S. dollar. Its design also aims for simplified adoption and integration as it’s built on several blockchains, including Ethereum, 

. Because of its price stability and functionality on numerous popular blockchains, USDT is often used for trading digital assets. 

While there may be many stablecoins in the market, Tether holds the distinction of being the largest one, with a market cap of $82.02 billion (Sep 12, 2023). This positions it as the third largest crypto, behind Bitcoin and Ethereum. Because it’s a stablecoin, USDT has experienced minimal price fluctuations over the years, a trend that’s projected to persist for the foreseeable future.

 is one of the most environmentally friendly digital assets today, thanks to its distinctive 

, whereby trusted validators collaborate to reach consensus over transactions. This unique protocol not only contributes to lower energy consumption but also facilitates swift transaction processing. In fact, Ripple has a transaction speed of 3–5 seconds — a stark contrast to Bitcoin or Ethereum, which can take minutes or even hours. Furthermore, its transaction fees are significantly lower, at only $0.0002 on average.

From August 2013 to September 2023, XRP's price rose by over 9,000%, with a surge of more than 55% over the past year. Ripple boasts a market cap of $25.12 billion, making it the fifth-largest digital currency.

 with the Securities Exchange Commission (SEC) since December 2020. While it's uncertain whether the outcome will be favorable, a positive verdict could lead to a sustainable price surge for XRP. Those interested in investing in Ripple should conduct thorough research on the ongoing SEC case before deciding to buy the XRP token. 

 blockchain technology is often compared to Ethereum’s. Both networks support smart contracts and DApps and are popular among developers in the blockchain space. However, Cardano's distinguishing feature lies in its layered architecture: the settlement layer handles the transactions, and the computation layer operates the smart contracts and DApps. This approach allows for increased flexibility in the use, design and privacy of smart contracts and DApps. Additionally, Cardano employs a unique PoS protocol called 

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Is Bitcoin a Good Investment? [2024 Edition]

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